This time last year there were less homes on the market than there 1 year later. We experienced a shortage, where in anything gives into supply and demand. Less available makes more people desperate to find that good deal. Some buyers were frantically searching for the right home, making several offers, losing out to investors, waiting months on short sales and getting anxious trying to find the right home for the right price and in a decent amount of time.
Today 1 year later there are more choices, more traditional sales, more builders introducing more inventory and new subdivisions. The competition is elevated and sellers are not selling their homes in hours, 3 days, 5 days and 10 days right now. Homes are now selling average between 90-120 days after hitting the market MLS. Wow this a complete change from last year at this time, and could be quite disheartening to you as a seller. As a buyer, you are having more choices presented to you, but you are almost concerned about the homes that are on the market longer than a few weeks. Many clients say to me- "what is wrong with it". Even though it can be a great looking home walking in, some are afraid that if it didn't sell right away there must be a problem.
I try to explain economic slowdown, but when some houses are still selling in a matter of a few days, it makes those that aren't look bad. This is a normal market. I stress that sometimes markets need a break to rest, rejuvenate, and re-set themselves to a normal supply and demand capacity. When doing this there are such pockets of areas that will still sell quickly and those that will take a lot longer. Why the slowdown? In racing is called a "pit stop" in stocks it is a "correction", in sports it is a "time out"! In order for the market to perform the best over a long period of time and not experience the bursting bubble, the unnecessary run up of pricing or false inflation caused by creating high values in a short period of time that are not sustainable, these "breaks" must occur. Days on market will grow longer, competition will be stiffer and patience will be needed by all.
If you are in the market to buy or sell, ask yourself why? Is there a perfect time to buy and sell? Usually not, it is usually one or the other. If you are selling market your unique feature, lower your price, offer something no one else is. Entice the buyer to pick you over the neighbor. Last week in most east valley cities average days on market rose to over 100 which means your home may not sell quickly... but know that is normal. If you need to sell more quickly, you need something no one else has or your price needs to reflect your urgency. At this point in the market in most areas, you can not as they say... have your cake and eat it to!
If you are looking for what your home will realistically sell for in this market, call a Realtor today to get a consultation. We are the experts who will help you understand the market in your area and devise the best plan for you to sell within your expectations.BLOG COMMENTS POWERED BY DISQUS